Responding To Building Tenants

Posted by on May 4, 2016 in Blog - Commercial Investment Properties | 0 comments

Responding To Building Tenants

Responding To Building Tenants the Right Way

You chose to be your own property manager as a way to cut down on expenses and have full control over your buildings and land. This is not always an easy transition for investors however. Most investors are great with money and analytics and many also are handy enough to handle the day to day maintenance a building requires. Keeping tenants happy however is the key to your success, and it’s not always easy. Depending on the terms of your individual leases, here are some tips on handling tenants properly.

Do Your Homework First

When you serve as your own property manager, you don’t have the very nice feature of a firm doing tenant recruiting and screening for you (unless you contract it out). If you do your own recruiting, make sure to screen applicants completely before submitting them a lease. It can be tempting to take on a tenant and fill an empty building, but if they have a past history of not paying, multiple evictions, or a bad word of mouth around town renting to them may not be worth your risk. Credit and background checks, calling references, contracting previous landlords, and verifying the business income are extremely beneficial.

Include Everything In Your Lease

We’ve covered in our podcast that no two commercial leases are the same. Therefore it’s crucial to have a qualified counsel draft up a customized lease for every business that is going to occupy your property. Dealing with tenant concerns is much easier when you’ve covered all your bases in writing.

Respond Promptly and Courteously

It can be easy to assume that you’re doing a tenant a favor by offering them a location to set up shop for their business. In the competitive world of Florida commercial property investing and leasing however, who is really doing the back scratching. Commercial tenants are less obliged to not renew their lease when it’s up because their business location is established – that doesn’t mean they won’t though. Remember that these tenants now are the ones paying the bills so respond to their requests earnestly.

Communicate, Collaborate, Cooperate

If you’ve done your vetting properly, it’s likely that your tenant isn’t in the business of stirring up trouble. That being said, situations do arise (sales are slow, franchises require building adjustments, etc.). It’s in your best interest to communicate with your tenant to see what the issues are. Collaborate with them to help find a solution that mutually appeases both parties. Finally cooperate with them in implementing the changes efficiently. There are 1,000 different specific issues that may arise with the businesses that occupy your buildings. That being said, if you follow these 4 basic principles things should go smoothly. The next time your phone rings, remember the “Tenants Tenets”.

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